Speeches

Remarks to the American-Lebanese Chamber of Commerce

March 28, 2006

Thank you, Salim for that very kind introduction. It’s great to be with you and the American-Lebanese Chamber of Commerce, and to see so many good friends. I’m pleased also that I can introduce to you Amer Kayani, our regional Commercial Counselor. Amer is based at the U.S. Embassy in Cairo however, his responsibility includes Lebanon. That’s a good thing for us because he’s one of the best in the business—we worked together in the Gaza Strip for three years back in the mid-1990s. You know if someone can have commercial successes in Gaza—which Amer did—he must be extraordinary. He is also a dear friend.

Lebanon continues to be an exciting and challenging place for an American Ambassador—and I am convinced I have somehow managed to get the plum Foreign Service assignment. I can’t imagine anywhere else I’d rather be. And I can’t imagine a more interesting time to be in Beirut. As I look at the talent, energy and experience gathered in this room, I see the enormous potential in Lebanon during a unique period in this country’s history. What makes Lebanon so compelling for me, as U.S. Ambassador, is the continued forward movement of its people toward their goal of a sovereign, independent, democratic and prosperous country.

Since we last met in June, Lebanon has witnessed a number of significant events and, I believe, realized some important achievements. I’d like to highlight two of them, for which many of you here can share some credit.

I think the AmCham can be very proud of its participation in the 2005 Made in America trade fair. Made in America 2005 was an enormous vote of confidence by 314 companies in the economic potential of Lebanon. The more than 20,000 Lebanese, from all walks of life, who visited the fair, offered proof of widespread popular support for strong U.S.-Lebanese business and trade ties. Exhibitors at the fair shared American technology and innovations with eager members of Lebanon’s successful business community. As members of that dynamic community, you’ll appreciate a very tangible result from Made in America 2005: More than three million dollars worth of economic deals were completed as a result of the fair—a huge increase from the 2004 fair. The AmCham’s recent “door knock” visits to Washington D.C. and to Silicon Valley in California also produced tangible results in strengthening trade relations between the U.S. and Lebanon. I hope you can repeat that successful outreach in 2006 as well.

A second enormous accomplishment I would like to highlight today is Lebanon’s ongoing National Dialogue. Twenty years ago—or even as recently as two years ago—it would have been hard to imagine that representatives from every confessional community and political party would have agreed to sit side by side, around one table, to discuss the most critical political issues facing the country. Not that long ago, it was taboo to talk openly about the issues now before the National Dialogue. Significantly, these talks have not been conducted under the auspices—or even direction—of any foreign government—not the United States, nor France or Saudi Arabia. Nor was Rhustam Ghazali in the room next door!

These two achievements, in particular, feed my optimism about Lebanon’s future. But, to sound a very familiar theme, more work is needed to realize Lebanon’s full potential, and to achieve the Lebanese people’s vision—your vision—of a stable and prosperous, united and democratic Lebanon.

I urged the members of the American Lebanese Chamber of Commerce, when we were together in June, to play a role in Lebanon’s reform process. I argued that Lebanon’s vibrant civil society had both the ability and responsibility to speak up in the reform debate, and to lobby for positive change. Today, I would like to be even more direct: AmCham’s role must be more than just as a participant in the debate. The AmCham and its members need to partner with the Government of Lebanon to bring a comprehensive and credible reform plan to fruition.

You, the members of the American Lebanese Chamber of Commerce, have a deep reserve of knowledge and expertise to help inform and shape the debate on promoting comprehensive and credible economic reform in Lebanon. Your position as employers and your relationships with customers and suppliers both inform you and provide you opportunities to inform others about what changes are needed. Furthermore, your experiences with government bureaucracy, even frustration with high-priced telecom, lax intellectual property protection or incessant electricity outages are an enormous reserve of information.

You know from first hand experience that Lebanon’s current system is not sustainable. The reality is that Lebanon—economically—is living on borrowed funds and borrowed time. Lebanon’s educated youth and talented women remain unexploited resources. You know that for Lebanon’s economy to prosper, transparency must triumph over corruption and cronyism, and that capital markets need greater development.

But I am not asking you just to complain. I am asking you to be a partner with the Government of Lebanon in constructing the framework upon which a healthy economy can be built. This is no easy task. As Prime Minister Siniora is known to say, "Reform is not a honeymoon." No, reform is more like the months after the honeymoon when the reality of married life sinks in. Making a marriage work can entail a lot of hard work, of listening, of compromising, of taking decisions with the best interests of the family in mind, and with an eye to a life-time commitment. And with reform, as perhaps with marriage, these choices are sometimes difficult—particularly when the benefits are neither tangible nor obvious.

But, I’ll be blunt. Lebanon has no choice on reform: to become a stable, sovereign and democratic country, it must become solvent and economically sound. And for that to happen, Lebanon must move beyond debate and empty rhetoric to make changes in the way it manages it economy. And to do that, I’ll say, "It takes two to tango."

What you, the members of Lebanon’s successful business community, need to do, is let the Government of Lebanon know that not only do you want an invitation to dance, but that you will accept it and are ready for the close, mutually supportive and committed partnership necessary to ensure the successful transformation of Lebanon’s economy. And as a good tango partner, you’ll let your partner know when he is stepping on your toes or crippling your form.

The fact is that the Government of Lebanon needs the involvement of the business community to build a healthy economy. The government needs to receive your input and advice. You are the vital link to ensure that Lebanon’s citizens understand what is planned, what is expected, why the reforms are necessary, and where they will lead. There are going to be costs involved, without question. But the costs will lead to a stronger foundation and should be at least partially offset by decreases in the costs of key services such as telecom and internet. Moreover, the costs of not doing anything, of allowing Lebanon to continue on its current unsustainable path, will be much higher on everyone. I applaud your recent approach to Ministers Azour and Haddad to discuss ways to pave the way for Lebanon’s WTO accession. Likewise, your meeting with Minister Marwan Hamade on IPR and cable piracy issues was extremely productive.

Reform truly must be a "Made-in-Lebanon" process. To make the concept of Lebanese sovereignty and independence more than just ink on paper, the Lebanese themselves must be in charge of Lebanon, and that includes designing and implementing their own reform plan. This is a “Made-in-Lebanon” process but your international partners, in order to respond to requests for support, will expect a reform plan that is comprehensive and credible. This means reforms can’t be designed to suit a particular sector or political interest. There cannot be a repeat of Paris II in which promises were made but not kept. This time around the Government of Lebanon, in partnership with the business community, needs to repair the entire system.

In designing a comprehensive reform plan, the U.S. Government is urging the Government of Lebanon to work closely with the IMF to design credible, "Made in Lebanon" benchmarks that will indicate to the Lebanese people —and to the international community — that progress is being achieved. Especially given the experience and disappointments of Paris II, we do not believe that Lebanon will be able to mobilize the financial transfers and investment capital needed to move the country forward unless the Government enters into a serious program with the IMF. The IMF can help certify that progress is being made and can mobilize more resources than any single donor would be able to do.

The political commitment of the international community and of the U.S. in particular, remains strong. The United States, for example, looks forward to discussing with the Lebanese the possibility of concluding a Trade and Investment Framework Agreement, which will set up a consulting mechanism for improving and promoting bilateral trade.

But the Lebanese must do their homework. They must embrace their sovereignty and independence and take responsibility for Lebanon and its future. The national dialogue and the beginning of consultations on the economic reform package are encouraging—and make us hopeful that this time talk will be transformed into action. But these discussions must lead to results, not become a never-ending process that simply postpones decisions.

In closing, let me re-affirm the enduring, non-negotiable commitment of the United States to Lebanon and the Lebanese people. We are your partners; we will work with you and support you. And as two sovereign, independent nations, with diverse populations and democratic traditions, the United States and Lebanon can realize a more hopeful, secure and prosperous future for both peoples. I’m optimistic that the coming months will see the achievement of significant steps towards a more sound, healthy and resilient Lebanese economy. I look forward to our joint cooperation on Made in America 2006 to result in an even greater increase in Lebanese-American business partnerships.

Thank you for extending the invitation to me today to share U.S. thinking on what is needed to realize a more prosperous and economically sound Lebanon. I would be very happy to take your questions now.